Little Changed, With Conflicting Forces Observed

The major regional equity indices trade either side of unchanged in the first Asia-Pac session of the week, with deeper COVID restrictions in the Chinese province of Hainan, the post-NFP uptick in FOMC tightening premium, continued Chinese drills surrounding Taiwan and a shortening of Hong Kong’s quarantine period for international travellers at the fore on the headline front. The matters largely offset, although the net bearish skew to the major headline flow applied light pressure to the majority of the regional equity benchmarks. The Nikkei 225 was the outperformer amongst the major regional indices, last sitting 0.2% higher, benefitting from the post-NFP move lower in the yen. Elsewhere, the major regional indices run 0.2-0.8% below their respective Friday closes, while e-minis are 0.1% below Friday’s settlement levels.